Net Worth Update #6 – September 2018

I do this as it’s motivational to see the progress other bloggers are making on their financial goals and, hopefully, to provide some motivation for others as well.

I shared my first net worth update back in April 2018 and have been sharing monthly updates since.

Here are my numbers for September 2018:

Cash Reserves

Savings Account

$11,041 (+$16)

Checking Account

$2,000 (-$868)

Total Cash Reserves

$13,041 (-$852)

Non-Tax Advantaged Accounts

VTSAX

$37,265 (+$4,347)

Brokerage Account

$4,006 (+$64)

Total Non-Tax Advantaged

$41,271 (+$4,411)

Tax Advantaged Accounts

401k

$27,982 (+$1,739)

HSA

$1,437 (+$288)

Roth IRA

$5,557 (+$5,557)

Total Tax Advantaged

$34,976 (+$7,584)

Net Worth

$89,285 (+$11,144)

Progress

Here’s a look at my net worth progression since I started tracking it back in December of 2017:

Recap

From August to September my net worth increased by $11,144! That’s about a 14% increase from last month.

This increase is a bit misleading since I got paid twice in September. I get paid once a month and it worked out so that I got paid for August on September 1st.

September was another month with higher than normal spending, mostly related to moving. This month I moved with my girlfriend into a new place and we had a little Ikea excursion to finish furnishing the apartment (I ate their Swedish meatballs for the first time. Not bad.)

I also had my car shipped from Florida (an $1,100 hit… I don’t think there’s a further route in the US than the one my car took––south Florida to Seattle). The car has already started to pay for itself in the form of some beautiful hikes.

I also opened up a Roth IRA account, one of the things I mentioned I wanted to do in last month’s update. I did this through Vanguard as I already have my other investments there (my 401k is also through Vanguard) and it took less than 10 minutes. I invested $5,500 (the annual maximum) into VTSMX (which is the same as VTSAX, except without the $10,000 minimum).

I went with a Roth IRA over a traditional IRA as I wouldn’t get a tax deduction from the traditional IRA and because I liked the flexibility of being able to withdraw my contributions penalty free.

What Drove The Net Worth Increase?

Like I mentioned above, the main factor in this month’s increase was the double paycheck. I also got most of my security deposit back from my previous apartment, so that was a nice little bonus.

The market was fairly flat during September so I didn’t gain much there.

Where Did My Money Go?

In addition to the $5,500 I added to the Roth IRA, this month I was able to contribute again to VTSAX. I hadn’t done so for a few months since I needed money on hand, but I added $4,222 as a lump sum buy on the 30th at $72.95 per share.

I first bought VTSAX shares in December of last year at $66.34 a share. Nine months later they’re already over $70 (about a 10% increase). The best time to invest is always today.

I also put in $1,738 into my 401k and remain on track to reach the $18,500 max annual contribution limit. Everything else went into my checking account.

Here’s my total asset allocation:

Where I’m Headed

Over the past few months I did a few small things that will have a big impact in the long-term.

In May I signed up for an HSA at work and then last month I invested the funds I had in there in SPTM (the HSA investments are managed through Ameritrade and SPTM is one of the only total market commission-free funds I found). This lowers my tax bill and provides tax-free growth.

In June I finally got rid of my awful no-interest Wells Fargo savings account from college and opened one up at Capital One (I’ve heard Ally is also good), where I’m getting 1.85%. Over these past few months I’ve made about $55 worth of interest.

This month I opened up a Roth IRA, which won’t lower my tax bill, but will provide tax-free growth. I’ve reached the max annual contribution for 2018 and will add to it again next year.

Overall, the game plan remains unchanged: save as much as possible, max out my 401k, and put all I can into VTSAX. The goal is to surpass the $100k mark sometime before the end of 2018 (🤞).

If you have any questions or comments or just wanna chat, you can reach me at ziadig@gmail.com.

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